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A BILL TO BE ENTITLED
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AN ACT
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relating to sales and use tax exemptions and refunds for certain |
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tangible personal property used to provide cable television |
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services, Internet access services, or telecommunications |
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services. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 151, Tax Code, is amended |
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by adding Section 151.3187 to read as follows: |
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Sec. 151.3187. PROPERTY USED IN CABLE TELEVISION, INTERNET |
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ACCESS, OR TELECOMMUNICATIONS SERVICES. (a) In this section, |
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"provider" means a provider of cable television service, Internet |
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access service, or telecommunications services. |
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(b) Except as provided by Subsection (c), the sale, lease, |
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or rental or storage, use, or other consumption of tangible |
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personal property is exempted from the taxes imposed by this |
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chapter if: |
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(1) the property is sold, leased, or rented to or |
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stored, used, or consumed by a provider or a subsidiary of a |
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provider; and |
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(2) the property is directly used or consumed by the |
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provider or subsidiary described by Subdivision (1) in or during: |
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(A) the distribution of cable television |
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service; |
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(B) the provision of Internet access service; or |
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(C) the transmission, conveyance, routing, or |
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reception of telecommunications services. |
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(c) The exemption provided by this section does not apply |
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to: |
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(1) the sale, lease, or rental or storage, use, or |
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other consumption of tangible personal property directly used or |
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consumed in or during the provision, creation, or production of a |
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data processing service or information service; or |
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(2) a tax authorized or imposed under Subtitle C, |
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Title 3. |
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SECTION 2. Section 151.3186, Tax Code, is repealed. |
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SECTION 3. (a) The repeal of Section 151.3186, Tax Code, by |
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this Act does not affect a refund for which a taxpayer: |
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(1) became entitled to the refund before the effective |
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date of this Act; and |
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(2) timely filed a claim for the refund with the |
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comptroller of public accounts on or before March 31, 2026. |
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(b) Except as provided by Subsection (a) of this section, |
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the change in law made by this Act does not affect tax liability |
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accruing before the effective date of this Act. That liability |
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continues in effect as if this Act had not been enacted, and the |
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former law is continued in effect for the collection of taxes due |
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and for civil and criminal enforcement of the liability for those |
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taxes. |
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SECTION 4. This Act takes effect January 1, 2026. |